Bitcoin's market run-up sends options to all-time high for open interest

Bitcoin's price has been on a tear — and that's helped bring the options market for the digital asset to new heights, according to data compiled by The Block. 

The price of bitcoin has appreciated by about 15% over the last five days, sending the price of the cryptocurrency above $13,000 for the first time since 2019.

At the same time, the aggregate open interest across bitcoin options has surged to all-time highs close to $2.5 billion. According to The Block data sources, the aggregate open interest — which represents the total number of positions outstanding — stands at $2.48 billion, with crypto exchange Deribit making up the lion's share of OI at $1.82 billion.

Meanwhile, open interest in CME Group's bitcoin option topped $337 million. 

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This development shouldn't come as a surprise to market observers given that open interest is a function of the price of bitcoin — meaning the value of each contract trading increases as the price increases.